My chances

My chances

Hello , thank you in advance for reading.

I really need a car and I may seem as if I'm a bit spoiled but I want something that's nice to look at... I was seaching for 09-12 cars, what are my chances for an auto loan approval? I know what I can afford to pay on a car monthly (300) plus insurance.. I cant have a co-signer as everyone close to me have very, very poor credit scores.. My credit score are as followed TU:720 EQ:660 and EX:702 with just two years of history and my sig shows the number of cards I have. My annual income (gross) is 21000 I still go to school and have a utl of just 7%. With that low amount of income and short credit history, would I qualify for a low apr/good auto loan? Also I forgot to mention, I have 4000 to put down and can use my credit card if dealers even accept that.. If anyone can help that'll be awesome, no Toyota please, I know they're dependable... Just not my thing. Be harsh if you have to.. Thank you. Absolutely no negatives on my report, EQ is low due to a joint account which has been settled.

Re: My chances

I think if you just consider your score/history you would have a decent chance of approval on your own. However, they might be a bit concerned with your income especially being that it is gross income and not net income as your net income would be less. If you dont mind sharing, what is the source of your income? BUT, since you have a decent down payment (almost a third of the purchase price), that will weigh heavily in your favor as you would be financing less.

Keep in mind though to think about your budget after you graduate and what your student loans (if you have them) will be per month to make sure you will still be able to afford the car after you graduate.

Who do you bank with? I always suggest having a back up financing plan (that you are satisfied with) in case you are not satisfied with what a dealer will offer you. If the bank does not approve you without a cosigner, there is a chance that a dealer may not as well.

Re: My chances

Ahhh ok I thought you were looking to purchase. Leasing tends to be income sensitive because at the end of the lease you could possibly owe additional money and they would want you to be able to pay that.

I know in my area Nissan currently has a 269/mo lease special with 3,379 intial. Kia has a 199/mo with 2,399 initial on a 2013 Optima. They both seem to be in your budget so I would say test drive them and see what you like best. Then, see if the one you like best can offer you anything without a co-signer.

Re: My chances

Awesome, I'm going in after my discover reports a zero balance.. So if I make 21000 and want to lease a car that's 20000 would it be easier getting approved for Since the monthly payment would be lower? Thanks

Re: My chances

Jimmy9224 wrote:

Hello , thank you in advance for reading.

I really need a car and I may seem as if I'm a bit spoiled but I want something that's nice to look at... I was seaching for 09-12 cars, what are my chances for an auto loan approval? I know what I can afford to pay on a car monthly (300) plus insurance.. I cant have a co-signer as everyone close to me have very, very poor credit scores.. My credit score are as followed TU:720 EQ:660 and EX:702 with just two years of history and my sig shows the number of cards I have. My annual income (gross) is 21000 I still go to school and have a utl of just 7%. With that low amount of income and short credit history, would I qualify for a low apr/good auto loan? Also I forgot to mention, I have 4000 to put down and can use my credit card if dealers even accept that.. If anyone can help that'll be awesome, no Toyota please, I know they're dependable... Just not my thing. Be harsh if you have to.. Thank you. Absolutely no negatives on my report, EQ is low due to a joint account which has been settled.

Here's what I'm thinking...you may want to consider not going over $201.75 for a lease payment. Consider Leasetrader.com or swapalease.com because with your credit, you can assume someone else's lease without having to put any money out. Keep that $4k in an emergency fund. Additionally, you can find a lease on the websites above for any budget. The reason I say no more than 201.75 is because you make 8x's that amount. It's a very cushy place to be in my opinion. Leasing companies require that you carry (in most cases) insurance limits that exceed your state minimums. For example, you'll probably be required to carry 100k/300k/100k on your lease which will drive up your monthly premiums, factor in GAP insurance and your payments may be a little inflated. Play it safe and smart, take oversomeone else's lease. The only fee you may have is the transfer fee and probably transport if the person doesn't live in your state.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.